Mortgage-stye loans are commonly used for financing solar PV projects. The borrower pays a fixed amount every month, paying down both interest and principal. This is similar to any mortgage payment or car payment. Here is how to model a mortgage-style loan:
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Go to your account Database in the left navigation menu.
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Locate the Financing Products to the left side of the screen.
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Click on the Add Financing Product button at the top right corner of your screen
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When the New Financing Product box appears type in the name of the Loan that you want to create. Click the Add button to continue.
- Once you create, you will see a new page that shows the following:
- Click the Add Loan button on the screen.
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Once the Add Loan box pops up on screen go through and fill in the fields that apply to your loan here on screen:
a. Name - Loan name
b. Principal - The percentage from 1-100% for which the total project cost the loan is intended to cover. For example if all project cost is to be financed then enter 100.
c. Dealer Fee - This applies to your personal Dealer Fee that you are charged to offer this finance option to your customers.
d. Add Dealer Fee to System Cost? - This is an optional field to where you can check this box to have the dealer fee cost included in the total Loan Principal amount.
e. Interest is Tax Deductible? - This is where if the loan interest is tax deductible.
f. Loan Type - Select Mortgage Style
g. Interest Rate - The interest rate determined by the financial provider who is funding the loan goes here.
h. Duration - Length of the loan term in months, for example if it’s a 20 year loan then the total number of months is 240 (12 months/ year x times 20 years) for the duration.
i. Then click the Save button
8. Finally, make sure the loan that you have chosen is under your saved list of Financing Products.